The Cairo-based Orascom Telecom Holding (OT) has signed of a Joint Venture Agreement with Kuwait’s National Mobile Telecommunications Company (Wataniya Telecom) to jointly develop and operate Orascom Telecom Tunisia (OTT). The Transaction is subject to appropriate regulatory approvals and is expected to close prior to the end of October 2002.

Wataniya Telecom has agreed to acquire 50 percent of OTT for a total consideration of $113.5 million including an immediate cash payment of $90 million. Proceeds of the consideration will be used to reimburse shareholders loans and finance OTTs operations.

Pursuant to the Joint Venture agreement, OT and Wataniya Telecom will share identical rights in the management and the Board of OTT. OT will remain the majority shareholder in the Consortium of Arab and International investors that owns the remaining 50 percent through its controlling stake in OTuH, a holding Company that owns 35 percent of OTT. — (menareport.com)